TechFlow, May 16 — According to the Financial Times, Japanese Prime Minister Shigeru Ishiba stated he will insist on securing a more favorable trade tariff agreement with the United States, demanding the complete removal of the U.S. 25% import tariff on Japanese automobiles rather than accepting unequal terms that could trigger domestic political backlash.
Although Japan hopes to avoid deteriorating relations with Washington, pressure from business leaders and within the ruling Liberal Democratic Party has forced Ishiba to reconsider his negotiation strategy. Official data shows that Japan's goods trade surplus with the U.S. reached $63 billion in fiscal year 2024–2025, with the automotive sector accounting for 81% of this surplus. With Japan's upper house election scheduled for late July, the government expects it will be difficult to reach an agreement in the short term ahead of the upcoming election.
